Dhaka: Bangladesh is embarking on a comprehensive initiative to expand and modernize its railway network, aiming to enhance capacity, reduce travel time, and improve safety and reliability. The government's plan includes new rail links, double-line corridors, modern signaling systems, and the eventual introduction of electric and high-speed trains as essential elements of the country's passenger and logistics network.
According to United News of Bangladesh, the government's 2026-27 budget documents highlight a focus on constructing new railway lines and bridges, procuring modern locomotives, coaches, and wagons, upgrading existing infrastructure, and expanding optical-fiber-based communication networks. These measures aim to bolster railway connectivity with seaports, land ports, and cross-border links, while increasing commuter train services.
The Dhaka-Chattogram corridor is a significant focus of the plan, with a proposed chord line on the Dhaka-Cumilla section expected to reduce the rail distance between Dhaka and Chattogram by around 80 kilometers. The government anticipates that this shorter route will cut travel time between the two cities from about five hours to three hours. Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced that a feasibility study for this line has been completed, with the Shyampur-Cumilla alignment preliminarily selected.
Additionally, the government is advancing plans for electrification of the Dhaka-Chattogram railway corridor. Prime Minister Tarique Rahman informed Parliament that feasibility studies and detailed designs for installing electric traction have been completed, with implementation contingent upon securing the necessary financing. The introduction of electric trains is expected to increase average speeds and reduce journey times.
The government is also working on converting the Dhaka-Chattogram railway route into a dual-gauge double-line corridor. Feasibility studies and designs for dual-gauge double lines on the Tongi-Akhaura and Laksam-Chattogram sections have been completed, with projects currently in various stages of approval and preparation.
Emphasizing freight transport, the government's strategy aims to increase the commercial viability of Bangladesh Railway and strengthen its role in the country's supply chain. Proposed connections involving Chattogram Port, Bay Terminal, and Dhirashram Inland Container Depot are key to creating a robust rail-based link between seaports and inland logistics facilities. The government also plans to encourage private investment in railway development, utilizing Public-Private Partnership arrangements for suitable projects.
The modernization program includes procuring new locomotives, passenger coaches, and freight wagons, along with enhancing railway workshops to facilitate local assembly of rolling stock. Upgraded signaling systems and communication networks are also part of the planned improvements to enhance operational reliability and service quality.
In the long term, Bangladesh aims to extend railway connectivity to all districts and major cities, strengthening links with ports, economic centers, and neighboring countries. The proposed Tk 9,940 crore budget for the Ministry of Railways in 2026-27 underscores the priority placed on railway development.
Despite a Tk 221 crore increase in revenue in the 2025-26 fiscal year, Bangladesh Railway continues to spend more than it earns. The railway's total operating expenditure was Tk 3,955 crore, resulting in an expenditure-to-income ratio of 1.91, an improvement from 2.09 in the previous fiscal year.